MONTHLY NEWSLET TER MARCH 2021 - IQI Global
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MONTHLY NEWSLETTER MARCH 2021
SHAN SAEED
Chief Economist at Juwai IQI
+60 10-893 1107 shan.saeed@iqiglobal.com
Global Economic Outlook:
Drama on Wall Street Creates Ripple in the Market
The meeting of technology and high finance is
a volatile cocktail. Nevertheless, if managed
correctly, the economy and investors can win.
On one side stand the people of Main Street,
led by a merry band of Reddit traders. On the
other side stand the silk suit and martini lunch
crowd known as Wall Street. Furthermore, Main
Street just dealt Wall Street an epic blow last
week. There are no loyalties on Wall Street.
Someone rightly said about WS: when you
smell blood in the water, you become a shark.
Individual investors rallied on Reddit and other
message boards and bought the stock en
masse. Their apparent goal: Beat the tall-dollar
hedge funds that had placed massive -- and, if
they fail, potentially ruinous -- bets that
GameStop shares would fall. A little more than
three weeks ago, shares traded around $20. As
of Jan 28, they were hovering around $150,
having recently peaked near $480. Some
online brokerages had even halted trading in
GameStop, drawing criticism and allegations
that they were doing so expressly to protect
billion-dollar hedge funds at individual
investors' expense.
Whichever side you take in this standoff, remember that GameStop's fundamentals have not changed. It
has not announced higher profits or successful new strategies. The company itself has provided no
underlying reason for these massive fluctuations. Individual investors may succeed in forcing hedge
funds to blow all their cash reserves and go belly-up, covering their failed bet on GameStop's decline.
Investors Withdrawn Funds Globally
Company Funds Withdrawn in Billion Global asset management
companies are under much pressure.
Franklin Templeton $ 50 What happened in 2020 is a clear
Capital Group $ 33
signal that asset companies need to
adopt a new strategy to retain funds
Dimensional Invesco $ 26 from depleting. An engagement
T Rowe Price $ 26
strategy can work best for them.
SHAN SAEED
Chief Economist at Juwai IQI
+60 10-893 1107 shan.saeed@iqiglobal.com
Vaccines Diplomacy or Protectionism
According to Economist magazine, the coronavirus has killed more than 2 million people and infected
many more since its emergence in China in December 2019. It has compelled many governments to
lock down their populations to a degree unimaginable until recently. The incident has caused the most
brutal recession in living memory. The rapid development of vaccines does at least offer some grounds
for optimism. It provides good hope during the pandemic—from the virus's science and the vaccines to
the political, economic, and social consequences. We could expect vaccines diplomacy adopted by
China to impact globally, as more and more countries are trying to open.
Oil is Heading North at $70/Barrel.
Are We Hitting Our Target Price Again?
Oil has moved higher and touched $61/barrel today, i.e.,
Feb 9-2021, when writing this piece. We anticipate oil
prices to move around $50 to $70 / barrel in 2021. A 1 Geopolitical risk
surge of interest in commodities is backing the recent
rally. The Organization of Petroleum Exporting Countries
and its allies have pledged to keep draining a 2 Depreciating dollar
virus-driven surplus. There are expectations that the
global economy will recover this year, raising forecasts 3 Production cuts
for more robust oil demand. Few variables will make an
impact on the oil price outlook in 2021.
Malaysian Economic
Outlook 2021:
Structured Growth
We maintained our stance that GDP will
meander around 3 to 4 per cent in 2021 with
macroeconomic stability in place. Ringgit will
have structural stability against the dollar this
year and move around 3.67 to 4.10. Price
inflation to remain under control with slow
aggregate demand at the macro level.
Source: ft.com Visit www.iqiglobal.com now for more information!
DAVE PLATTER
Global PR and Communications Directors at Juwai IQI
+61 432 814 888 dave@juwai.com
Juwai Insight
ASEAN to see Rapid Rebound in 2021
The year 2020 was challenging for nearly
every country in the world. Nevertheless,
which nations are likely to recover most
quickly in 2021 and 2022?
Most economic analysts would put the
ASEAN nations among the ranks of the
likely best performers. The enthusiasm
from all sides for the recently signed
Regional Comprehensive Economic
Partnership ("RCEP") will have
tremendous economic benefits for
ASEAN nations.
Although the pact does not regulate
property investment, its positive impacts
will extend to the sector. Benefits will
spread to varying degrees among all the ASEAN nations, including Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
US$186 billion will be added to global incomes in 2030 because of the RCEP agreement.
Trade among members will climb by US$428 billion.
The countries involved in the partnership will generate half the world's global economic output by 2030.
Moreover, soaring wealth levels will lead to more tightly integrated supply chains and increased
intra-regional travel, tourism, and real estate investment.
Indeed, RCEP will not be suitable for everyone. Nevertheless, the countries that will suffer from the
trade pact are those who are not members. Non-members will see their trade shrink by $48 billion.
RCEP came at just the right time for the Asia-Pacific region. The pandemic created an economic crisis
and turned many nations inward. Closed borders have isolated nations in a way not known since the
invention of air travel.
The benefits that RCEP will bring have already played an essential role in reaffirming the value of open
economies, cross-border ties, and international investment. These conditions are vital to mutual
economic growth and shared prosperity.
An open and innovative Asia Pacific that embraces deeper integration will be wealthier and a better
place for all its citizens. Furthermore, real estate is an important sector that is helping accelerate the
trend towards increasingly integrated economies.
Visit www.iqiglobal.com now for more information!
IRHAMY AHMAD
Founder and Managing Director of Irhamy International Valuers
+60 12-331 1878 irhamyahmad@iivglobal.com
Property Market Commentary 2
Quarter 3 2020
RESIDENTIAL OVERHANG in Malaysia means a new property that has received the Certificate of
Completion and Compliance (CCC) but remains unsold for more than nine months after the launch date.
The National Property Information Centre (NAPIC) 's latest market status release reveals a staggering
set of numbers that is yet to be absorbed by the market. Across the country, there are a total of 65,552
overhang units (OUs) to date. This figure translates to RM50.17 billion in terms of value. In other words,
there is over RM50 billion worth of completed residential property stuck in the market unsold.
The bulk of the OUs of 84.2% lies in the residential and serviced apartment subsectors, and out of this,
30,926 are residential units, and 24,267 are the serviced apartments. For the residential units, 45% are
housing above RM500,000, and 29.5% house below RM300,000. As for the serviced apartment
sub-sector, almost 60% are made up of serviced apartments priced above RM500,000 to RM1,000,000,
whilst close to 30% are apartments priced above RM1,000,000.
Where are these overhang properties located, one may ask? The majority of the OUs are in major
conurbations such as Johor, Selangor, and Kuala Lumpur, as graphically shown below.
The next question is, why this has happened?
My take is Location, Location, Location.
Source: NAPIC Visit www.iqiglobal.com now for more information!
AUSTRALIA
LILY CHONG
Director at IQI WA
+61 415 547 878 lily@iqiwa.com.au
Residential
Australia is on the road to recovery following the global pandemic (well, most of it), with January seeing
a 0.9% increase in Australian median national dwelling value. As international travel stands still,
Australia's larger capital city's CBDs feel the pinch as a lack of demand from overseas students and
tourists heavily impacts inner-city dwelling prices. Meanwhile, locals flock to regional Australia, inflating
demand as working from home culture continues.
Perth's recovery continues to make strides, with houses flying off the shelves after staying on the
market for a low 21 days on average (compared to 43 days January 2020). House prices are 3.4% higher
than in January 2020. As investors begin to return to the market on the back of Perth's current rental
crisis, prices are expected to continue to rise.
Sydney's market has become a two-horse race off the back of the global pandemic. Reduced overseas
demand from students and tourists have pushed CBD unit prices down. Working from home culture has
allowed locals to move away from the CBD and inflate regional housing markets. In January 2021,
Sydney dwelling values are up by 2% compared to the same time last year.
Melbourne's market is experiencing the same two-horse race as Sydney, with house and unit prices
moving ineffectively in different directions. House prices are now 64% higher than unit prices, compared
to 52% over the past decade. Melbourne dwelling values in January 2021 are 2.1% lower than January
2020s, the only Australian Capital city to record a decrease.
AUSTRALIA
LILY CHONG
Director at IQI WA
+61 415 547 878 lily@iqiwa.com.au
Commercial
2020 was a sore year for the Hotel industry, and sales transactions decreased by 45% between 2019 and
2020. Sales that did occur were primarily thanks to overseas investors. With the bottom of the market
looming, overseas investors have proven themselves to be countercyclical. Sales transactions are
expected to beat 2019 levels during 2021 as part of Australia's post-covid recovery.
With international borders closed, Perth's hotel market has benefitted from interstate travellers and
pent-up local demand. Despite not wholly operating at pre-covid levels, Perth has been one of the least
affected Hotel markets. Locals have taken to pampering themselves with weekend staycations boosting
local hotel and food and beverage industries.
Sydney siders have flocked to the countryside and coast as regional hotels enjoy increased demand for
rooms. Byron bay has been reported to be flooded with local and interstate travellers to the point where
local infrastructure is struggling to keep up. Conversely, Sydney CBD hotel market supply is being
added weekly as new hotels open their doors, harming pricing.
Melbourne boasts the largest hotel construction pipeline. The CBD hotel market is witnessing large
amounts of new supply being added to worsen the industry's current circumstances. Last November,
overall occupancy for hotel rooms sat at around 30%, boosted only by quarantining travellers and health
workers. It has estimated that around 80% of Melbourne hotel demand is missing as it belonged to
overseas travellers that currently cannot enter the country.
Source: corelogic.com.au, f.hubspotusercontent40.net Visit www.iqiglobal.com now for more information!
CANADA
YOUSAF IQBAL
Director at IQI Canada
+(1)647 669 9222 yousaf@iqiglobal.com
Toronto
January 2021 home sales amounted to 6,928 – up
by more than 50 per cent compared to January
2020. This included sales growth across all major
segments, including condo apartments, in Toronto
and surrounding GTA regions.
New listings were also up on a year-over-year basis
in January, but not by the same annual sales rate.
The market saw double-digit growth in the MLS®
Home Price Index and the average selling price.
The average selling price for January 2021 was up
by 15.5 per cent to $967,885 year-over-year. The
MLS® HPI Composite Benchmark was up by 11.9
per cent over the same period.
Vancouver
The MLS® Home Price Index composite
benchmark price for all residential properties in
Metro Vancouver is currently $1,056,600. This
represents a 5.5 per cent increase compared to
January 2020 and a 0.9 per cent increase
compared to December 2020.
The Real Estate Board of Greater Vancouver
(REBGV) reports that residential home sales in the
region totalled 2,389 in January 2021, a 52.1 per
cent increase from the 1,571 sales recorded in
January 2020 and a 22.8 per cent decrease from
the 3,093 homes sold in December 2020.
The total number of homes currently listed for sale
on the MLS® system in Metro Vancouver is 8,306, a
3.6 per cent decrease compared to January 2020
(8,617) and a 2.7 per cent decrease compared to
December 2020 (8,538).
Source: communications.torontomls.net, trreb.ca, rebgv.org, com.apciq.ca, creb.com Visit www.iqiglobal.com now for more information!
CANADA
YOUSAF IQBAL
Director at IQI Canada
+(1)647 669 9222 yousaf@iqiglobal.com
Montreal
The table below shows the residential summary for Montreal.
Calgary
January sales were the highest they have been for
the month since 2014, as housing market momentum
from the end of 2020 carried over into the start of
2021.
January's new listings were 2,246, relative to the
1,208 sales in the market, causing inventories to edge
up over December levels. These movements are
typical for January, but 2021 is starting the year with
4,035 units in inventory. This is far lower than in the
past six years.
Benchmark prices remained at levels relatively
consistent with prices recorded at the end of 2020,
but they reflect a year-over-year gain just below two
per cent. Average and median prices recorded higher
year-over-year gains, likely due to more big sales in
the higher end of the market.
Source: communications.torontomls.net, trreb.ca, rebgv.org, com.apciq.ca, creb.com Visit www.iqiglobal.com now for more information!
DUBAI
OMER ALI KHAN
Director at IQI Dubai
+971 555 198 733 omer@iqiproperties.com
UAE Real Estate Markets 'Remarkably
Resilient' During Pandemic Crisis
Knight Frank predicts bottoming out of property markets during 2022 if mortgage rates remain at
historically low levels. Knight Frank said average mainstream prices in Dubai fell by 7.1 per cent in the
12 months to December, while Abu Dhabi values dropped by just 2 per cent, following a 7.5 per cent
decrease in the previous year.
Dubai Prime House Market Records
Dh29.5b Deals In 2020
Dubai's prime residential market recorded Dh29.54 billion worth of transactions in 2020, notwithstanding the pandemic's
challenges. Last year, more than 10,557 apartments and 1,512 villas were recorded in Dubai's prime residential market.
Fourth-quarter was the best performing quarter, registering Dh9.2 billion in terms of sales volume, according to analysis,
based on data from the Dubai Land Department.
There has also been a 5.0 per cent correction in price per sqft across the prime residential market from Dh1,327 to
Dh1,193, thereby indicating a strong surge in buyer activity, said a report. The Dubai prime residential market areas used
for the analysis included Al Barari, Arabian Ranches, Downtown Dubai, Dubai Marina, Business Bay, Emirates Living,
Jumeirah, Jumeirah Beach Residence, Mohammed bin Rashid City, Jumeirah Golf Estates, Jumeirah Islands, Jumeirah
Lake Towers and Palm Jumeirah.
The top three areas in terms of sales volume were MBR City (Dh6.4 billion), Downtown Dubai (Dh5.1 billion) and Palm
Jumeirah (Dh3.5 billion). The Jumeirah Beach Residence area showed the highest growth of sales at Dh1.8 billion (five
times higher than 2019), followed by Jumeirah (four times growth in sales at Dh 651 million) and Jumeirah Islands
(two-fold growth in sales at Dh284 million). According to other surveys, in 2021, Dubai's residential sector is expected to
add 39,000 units following a surge in the supply in 2020. Last year, the overall residential market saw nearly 36,000
units, marking an increase over the number of units added to the market in the previous year, according to data
supplied by real estate consultancy Core.
Data from Asteco also shows that 2019 saw a total of 31,000 residential units coming into the market in Dubai 2019,
comprising approximately 23,600 apartments and 7,400 villas. According to Data Finder, a total of 32,822 residential
units in the freehold and non-freehold communities was completed in Dubai in the first nine months of 2019, and
another 13,216 units have a completion date towards the end of 2019 or Q1 2020. In 2020, the prime villa market
remained stable with an average price of Dh6.3 million, about 3.0 per cent higher than the previous year – indicating
that buyers were keen to purchase villas in 2020. The affordability factor has increased, and the trend observed was
that people were opting to buy homes with larger spaces. There was an average of 1,000 square feet increase in the
size of the villas transacted across all areas – making the average built-up-area of a prime villa 5,981 sqft.
Prime apartments also remained stable with minimal to no price correction at Dh 1,404 per square foot. The average
prime apartment now costs approximately Dh1.8 million for a unit spanning 1,698 sqft in built-up-area. According to
the report, half the most expensive transactions in 2020 are from MBR City – Dubai Hills, and District One
developments form part of the area. Emirates Hills continued to hold a place among the most expensive villas in
Dubai.
Source: Extracts Khaleej times/Knight Frank Visit www.iqiglobal.com now for more information!MALAYSIA
NICHOLAS TAN
Property Investment Strategist at IQI
+6 012-393 3405 info@iqiglobal.com
Residential
According to the National Property Information Centre
(NAPIC), the property market’s performance recorded a
sharp decline in the first half (1H) of 2020, in consonance
with the Malaysian economic performance, which
contracted by 17.1 per cent in the second quarter (Q2) of
2020. (Q1 2020 was at 0.7 per cent).
For the 1H 2020, the property sector recorded 115,476
transactions worth RM46.94 billion, a decrease by 27.9 per
cent in volume and 31.5 per cent in value compared with
1H 2019, which recorded 160,165 transactions worth
RM68.53 billion.
Bank Negara Malaysia's decision to maintain the overnight
policy rate at 1.75 per cent in January 2021 as global
economy continued to improve, coupled with strong policy
support, is also an attraction for house seekers, as a low
interest rate would give a head start in interest rate
savings.
The property market has experienced a correction in terms
of pricing with more affordable housing launched in the 1H
2020.
According to NAPIC director, half of the new launches in 1H 2020 comprised houses priced at
RM300,000 and below (6,657 units), while the RM300,001-RM500,000 range of houses accounted
for 28.9 per cent (4,476 units) and houses priced over RM500,000 accounted for 21.1 per cent (2,161
units).
In Q3 2020, NAPIC report shown new launches in the residential sub-sector recorded 6,087 units in
volume, which include 2,960 units of high-rise properties and 3,127 units of landed properties.
Prices ranging below RM300,000 in Q3 2020 made up 50.5 per cent (3,073 units), while the prices for
the RM300,001-RM500,000 range 24.7 per cent (1,505 units), and those above the RM500,001 range
comprised 24.8 per cent (1,509 units).
A total of 31,661 houses worth RM20.03 billion were unsold in the first quarter of this year compared
with 30,664 units amounting to RM18.82 billion in 2H 2019 according to NAPIC’s record.
To resolve the issue of unsold completed residential units and ensure a more organized property
development in the country, the Housing and Local Government Ministry is developing the Housing
Integrated Data System, which is expected to be ready next year, said NAPIC director Aina Edayu
Ahmad.
Sources: NAPIC & Bernama Visit www.iqiglobal.com now for more information!PHILIPPINES
EMMANUEL ANDREW VENTURINA
Vice President at IQI Philippines
+632 878 0755 drew@iqicaliver.com
Residential
The Philippine Central Bank projects that we will see a strong rebound with a 7.8% growth in 2021.
However, the timeline of the distribution of COVID-19 vaccines, and when countries can open, will highly
determine how economies and real estate markets perform. Looking at the analysis done by Colliers
International, previous take-up rate targets are unlikely to be met and will reach 300,000 to 600,000
square meters. At the same time, vacancy rates will increase from 5.5% to 7%, and lease rates decrease
by as much as -17% in Metro Manila. The condominium market will face great challenges as well.
The residential property market was stable, and prices continued to rise before 2019. According to
Colliers, the average price for 3-bedroom luxury condominiums rose by more than 15% in 2018, to USD
4,371 per square meter. The market outperformed all previous years since 2013. Having said that, we
have seen issues with an oversupply of units and high vacancy rates in certain areas.
According to JLL, the increased demand for residential units mainly comes from young local
professionals, upgrading families, and High-Net-Worth-Individuals (HNWIs) from overseas. We also see
increasingly high remittances from Overseas Filipino Workers (OFWs). In addition to Manila, we also see
increased activities in emerging cities outside of Metro Manila, including Cebu, Iloilo, and Davao. Firms
now outsource to other parts of the Philippines. This will most likely have a positive impact on the local
residential markets in the long-term.
3, Build, build, build to continue
amid COVID pandemic – Villar
One of the government’s major projects in Metro Manila that is set to be completed this year is the first
five kilometers of the soon-to-open NLEX-SLEX Connector. The DPWH chief said the construction
progress of the project is currently at just 16%. However, right-of-way delivery for the whole alignment is
now 81%. With that, Villar is optimistic that the first five kilometers of the NLEX-SLEX Connector are
complete by year's end.
Set to link Harbor Link and Skyway, the toll road will serve as a direct link for motorists and truckers that
need to get from the Port of Manila to the south of the metro, and vice versa. It will traverse the C3 Road
in Caloocan City, pass through Abad Santos, Dimasalang, Magsaysay Boulevard, and eventually reach
Skyway Stage 3 near the Polytechnic University of the Philippines (PUP) in Sta. Mesa, Manila.
The four-lane elevated toll road will have four toll plazas, along with interchanges in C3 and España.
When finished, the elevated road will provide better access to the Port of Manila and airports such as
NAIA and Clark International Airport. Travel time between NLEX and SLEX could go from two hours to
just 20 minutes. With Skyway Stage 3 already providing a direct link between Alabang and Balintawak,
the upcoming NLEX-SLEX Connector will further free up traffic in Metro Manila once it's finished. (PIA
NCR)
Sources: Business World Visit www.iqiglobal.com now for more information!PHILIPPINES
EMMANUEL ANDREW VENTURINA
Vice President at IQI Philippines
+632 878 0755 drew@iqicaliver.com
Retail
DTI roadmap aims to double e-commerce
contribution to economy
The Department of Trade and Industry (DTI) seeks to double the contribution of e-commerce to the
economy to P1.2 trillion by 2022, from nearly P600 billion in 2020. Trade and Industry Secretary Ramon
Lopez announced this target as he unveiled last Friday the latest roadmap for the e-commerce sector,
which played a critical role during the pandemic.
“From a baseline of P599 billion that e-commerce contributed to our economy in 2020—equivalent to 3.4
percent of GDP (gross domestic product)—our target is to increase this to P850 billion by 2021 or 4.3
percent of GDP and P1.2 trillion or 5.5 percent of GDP by 2022,” Lopez said in an online event. The DTI,
however, could not say how much e-commerce grew last year compared to previous years’ levels.
Malls go online as shoppers stay home
The pandemic has forced mall operators and retailers to accelerate their digital transformation.
Mall operators are now working closely with retailers to offer personal shopper services, delivery and
curbside pick-up for customers who are still wary of going inside the mall.
“We did a lot of innovation, like curbside pickup, call-to-deliver, as part of the (digital) transformation
and pivoting… Filipinos, they still like interaction… For those who really cannot come to the mall, we have
a number they can call and someone will assist them,” SM Supermalls President Steven Tan said during
the BusinessWorld Insights online forum on Jan. 20.
The company in November launched the SM Malls Online app for SM Megamall, SM City North EDSA
and SM Mall of Asia (MOA). The app allows customers to buy products from as many of the malls’ stores,
and pay just one delivery fee (with some exceptions). Customers can also pick up their purchases
in-store.
However, Mr. Tan said digital transformation is not solely about e-commerce.
“The take-up online is still very low. Digital transformation is not just about e-commerce. It’s also
innovation… You have to give (the customers) options, delivery, curbside pickup, cashless transactions.
This is what we are focusing on right now,” he said.
Sources: Business World Visit www.iqiglobal.com now for more information!THAILAND
SOMSAK CHUTISILP
Director at IQI Thailand
+66 81 909 0599 somsak@iqiglobal.com
Residential
Despite the pandemic and economic slowdown, the resale condo market remained steady.
Most of the buyers included Thai investors who had solid financial footing and cash savings. They
have waited for this opportunity since 2019.
Locations from Chidlom to Thong Lor remained the most popular for resale projects with
continuous selling and buying throughout 2020 (Price ranged 180,000-320,000 THB./ sq.m.)
The areas had high condo supply, forcing many operators and investors to lower prices to attract
buyers.
Office
The Bangkok office market is slowing because of shrinking demand and future supply
overwhelming the market, with flat growth in occupancy and rents expected this year.
In the fourth quarter of last year, the office occupancy rate may have been high, but it dropped to
91% from 94% in 2019.
Total office space at year-end 2020 was 6.2 million sq.m. with around 130,000 sq.m. newly added
during the year.
Average rents last year rose slightly by 1%, but the increase was lower than the average in prior
years, when there was 4-5% escalation per year.
Retail
The retail sector lost 500 billion baht in 2020, while the retail index for the first quarter this year is
expected to fall by 7-8%, according to the latest predictions by the Thai Retailers Association (TRA).
The TRA has requested the government to provide urgent assistance to stimulate the economy and
bring rising unemployment under control.
They have also suggested imposing import and value-added tax on e-commerce transactions and
controlling the sector so that prices are not allowed to fall below costs in a bid to protect Thai SMEs
and the Thai retail system as a whole.
Due to the pandemic, the 2020 TRA retail index fell from 2.8% in 2019 to negative 12% in 2020 -- the
first time the index had seen a double-digit negative figure.
Source: Bangkok Post Visit www.iqiglobal.com now for more information!INDIA
PANKAZ JAIIN
CEO at IQI India
+9717497378 info@iqiindia.com
As many countries distribute COVID-19 vaccines to fight against the virus and flatten the curve, the year
2021 will not quickly shake off all the challenges of a pandemic-riddled economy. However, the groundwork
for a sector-wide recovery has been laid.
Residential
According to a report by Jones Lang LaSalle, the worst is behind as challenges faced in 2020 have
become the catalyst in providing stimuli to the industry for sustained growth.
As citizens spent more time at home, the lockdown re-established the importance of owning a
house. At the same time, the Central Bank leads the way to recovery by holding policy rates at
historically low levels to initiate a cycle of consumption-led growth.
This has resulted in meagre mortgage rates. With prices been stagnant for the past few years, this
affordable synergy makes it a great time to purchase a home. Furthermore, the market is also
witnessing renewed interest from Non-Resident Indians (NRIs).
Office
In 2021, the IT sector is expected to remain the critical occupier group while demand from emerging
sectors such as e-commerce, manufacturing and healthcare is likely to increase further.
Strong market fundamentals in the form of sustained IT sector growth, increasing demand from
sectors such as e-commerce, healthcare, FMCG, and institutional investors' growing presence will
continue to drive the office market in 2021.
The year is expected to witness close to 38 mn sq. ft of new completions, while net absorption is
likely to hover around 30 mn sq. ft.
Commercial
There are three Real Estate Investment Trust listed in India that allows exposure to commercial real
estate in major metro cities like Mumbai, Bengaluru, Gurugram.
Over $3.5 trillion worth of assets are owned through such funds in the United States, and much
retirement money finds its way into these funds. It is a very structured way of investing in
income-generating real-estate.
This is mainly for those who do not want to risk their life savings into financial assets driven by
market cycles.
Source: Express, The New Indian Express, Money Control Visit www.iqiglobal.com now for more information!VIETNAM
NGUYEN NGOC THIEN AN
Sales Director at IQI Vietnam
+84 792 966 008 an.nguyen@iqiglobal.com
Residential
The supply of residential units is booming in March 2021 after new land use approval and auctions for
new projects development from Vietnam’s government, for both Hanoi and Ho Chi Minh City.
Demand side remains high towards the Eastern of Ho Chi Minh city with the formation of new Thu Duc
City with the combination of 03 districts: 02, 09 & Thu Duc making huge leap in demands for land and
apartments in the east area. The publishing of this amazing macro news at the end of 2020 made the
demand for residential properties remain very high in the first quarter 2021:
Vietnam’s growth accelerated to 4.5 percent in the last quarter of 2020 (y/y), resulting in annual
growth rate of 2.9 percent—making it one of the fastest growing economies in the world
Credit growth picked up slightly after the State Bank of Vietnam cut policy interest rates in October,
ending 2020 at 10.1 percent (y/y). Making loans for business as well as housing & investment to be
much more affordable.
Office
Office market continues to witness an increase in supplies
towards the first quarter of 2021 with up to 130,000 sqm mainly
in Grade B and Grade C office projects being completed with
expectations on good recovery in business sectors:
Industrial production and retail sales continued to
expand solidly, with growth rates close to
pre-pandemic levels.
December 2020 marked another strong performance
of merchandise trade, with double digit growth rate in
imports (23.1 percent) and exports (17.8 percent), while
FDI inflows slowed.
Demand side is getting better after a huge plunge after the 02
Covid-19 waves. The market see a 15% increase in firms
looking for new rental of offices, mainly grade B. Majority of the
market are those in the industries that were badly affected
earlier this year: hospitality, airlines and transportation. Rental
price is expected to be recovered and will increase slightly
towards the end of March 2021 as businesses resume their
operation for a brand-new beginning in 2021 in Lunar calendar.
Visit www.iqiglobal.com now for more information!SINGAPORE
RAYMOND KHOO
Vice President at OrangeTee and Tie
+65 9067 6151 raymond.khoo@orangetee.com
New home sales surged last month as many buyers rushed to secure units ahead of possible
property curbs. The strong sales had also coincided with a few mega launches where a high
number of units were launched by developers last month.
New home sales rose by 32.2 per cent
month-on-month to 1,609 units last month.
This is the strongest January sales since
2013 when 2,028 units were transacted
then. Compared to a year ago, sales
climbed 159.5 per cent.
Last month’s strong sales were observed in
a few key launches. The best-selling
project was the 1,862-unit Normanton Park
which sold 625 units. This was followed by
the 429-unit The Reef at King’s Dock which
moved 221 units. Other launches like Ki
Residences at Brookvale, Treasure at
Tampines, Jadescape, Parc Clematis, The
Garden Residences continued to move
units and were among the other top sellers
last month. Normanton Park is the largest
city fringe (RCR) project and its attractive
pricing drew many buyers to the project.
Moving forward, there could be more luxury home launches and the proportion of units sold in the
Core Central Region (CCR) may rise in the coming months. Some of the upcoming high-end
launches in the prime segment include Midtown Modern, Cairnhill 16, The Atelier, Park Nova (former
Park House), Klimt Cairnhill (former Cairnhill Mansions), former Liang Court, and the residential site at
Irwell Bank Road.
This year may see the market swinging back in favor of sellers as housing stock is depleting.
Demand for property has been healthy and is expected to remain strong amid further improvements
in the macroeconomic outlook.
Land sales have declined drastically in recent years as the collective sales activities came to an
almost complete halt in 2018. Government land sales have also been conservative over the past
years. For the first half of this year, the supply of new homes will remain moderate. Around 1,600
units may be launched from the confirmed list which will be lower than the 2,700 average units
released in each of the half years in 2018.
The oversupply risk of our private residential market may be easing soon. With a healthy net
absorption of new homes over the last three years, the higher take-up numbers against a
conservative supply have resulted in fewer unsold, uncompleted private homes. As such, the
cumulative unsold units may be nearing its peak and may start tapering this year.
Visit www.iqiglobal.com now for more information!CAMBODIA
CHANDY MANN
Head of Country at IQI Cambodia
+(855) 88 841 8741 mannchandy@iqiglobal.com
Phnom Penh condominium rental
prices down 11% by year-end 2020
The year 2020 has been a tumultuous year for Phnom Penh’s property market. The city’s rental market faced
challenges with the dwindling number of tourist and expatriate renters compared to previous years.
5 Phnom Penh districts see up to 11% lower
median rental prices by year-end 2020
Sen Sok district offers the lowest residential median
prices displayed on Market Trends, and are median
rental prices found across Phnom Penh which are
designed as a guide to navigate price ranges. The
new round of scares stemming from the November
28 incident put additional pressure on Phnom
Penh’s property market. Rental prices recorded in
December 2020 logged 5 districts seeing as much
as 11% lower median prices.
Chroy Changvar and Chbar Ampov saw double-digit
changes of 11% and 10%, respectively. As of
December 2020, the median rental price in Chroy
Changvar is recorded at $600 while Chbar Ampov
median rental price is recorded at $675. Median
rental prices for Por Sen Chey, 7 Makara, and Sen
Sok, similarly saw downward pressures. The Por Sen
Chey district faced a 9% decrease in median rental
price down to $600 while the more central district
of 7 Makara only saw a 7% decrease, resulting in a
median rental price of $650.
Phnom Penh’s property market is still under
pressure from comparatively lower market activity.
The November 28 incident, while officially
contained, serves as a reminder that without a
working vaccine, any prospect of recovery is still
susceptible to disruptions. Fortunately,
stakeholders in Phnom Penh’s property market have
learned to observe basic quarantine measures
required to curb further infections until a cure
becomes available.
Visit www.iqiglobal.com now for more information!Juwai IQI Moments
Juwai IQI to build 1,000+ strong data
and technology team in Kuala Lumpur
The move has been warmly welcomed by the Malaysia Digital Economy Corporation
(MDEC) and is in line with the government’s MyDIGITAL initiative to attract RM70 billion
investment in digitalisation by 2025.
Surina Shukri, CEO of Malaysia Digital Economy Corporation (MDEC) said:
“We welcome Juwai IQI to Malaysia and are honoured that they have chosen Kuala
Lumpur as their headquarters for global research and development. Juwai IQI’s
expansion plans are a clear endorsement of investors’ confidence in Malaysia.
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